KUALA LUMPUR, Dec 15 (Reuters) - London based CVC Capital Partners Ltd and Malaysia’s investment arm for the state of Johor have offered 5.24 billion ringgit ($1.65 billion) to buy fastfood chain operators KFC Holdings Bhd and QSR Brands Bhd, in what could be the largest foreign private equity linked deal in the country.
Their joint offer of 6.80 ringgit a share for QSR, the owner of KFC and Pizza Hut in Malaysia, tops an offer by U.S. private equity firm Carlyle Group at 6.70 ringgit.
The latest offer for QSR’s assets and liabilities is CVC’s second attempt after an aborted plan with Malaysian tycoon Halim Saae to pay 5.60 ringgit per share for the firm and represents a 13 percent premium to QSR’s last traded price of 6 ringgit.
State linked Johor Corp, which has an indirect interest in both KFC and QSR, created the special purpose vehicle with CVC Capital to also bid for KFC Holdings’s assets and liabilities at 4 ringgit per share, which is 17 percent premium to its last market price.
Based on Reuters calculations, the price tags for QSR and KFC stand at 2.06 billion ringgit and 3.17 billion ringgit respectively, excluding warrants.
Shares in QSR jumped 8.5 percent on Thursday after the announcement. KFC shares soared 11.7 percent, outperforming the broader market.